Ask Larry

Will Receiving Payouts From My 403(b) Plan Count For The Windfall Elimination Provision?

When applying for SS (my age is 66) and I paid into SS before and after my Church Pastoral Ministry,but was SS exempt during my ministry years, and I paid into a 403b9 program called Guidestone Retirement Resources, would this future payout (will apply for this payout in a year or so) be subject to SS scrutiny or Windfall Elimination Provision.
In my ss application, they are wanting me to varigy what future income will come (monthly) from this volunteer Stock-based investment and I don't understand what that has to do with my SS income amount. My Guidestone program isn't a Defined Benefit Plan or Church Pension. Your take?

Hi. The rules that determine whether or not a 403(b) plan counts for Windfall Elimination Provision (WEP) purposes are complex, and I don't have enough details to be able to give you a definite answer. You say that your 403(b) is not a defined benefit plan, but it sounds like Social Security would likely consider it to be a defined contribution plan (DCB). Distributions from DCBs can cause WEP to apply if the plan is or was the employer's primary retirement plan (https://secure.ssa.gov/apps10/poms.nsf/lnx/0300605364). So, whether or not your Social Security retirement benefit will be lowered due to WEP likely depends on the details of your 403(b) plan.

Best, Jerry

Posted: 
May 5 2021 - 10:00am
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